Don't let it get you down. You need to remember that this whole AI hype / AI will replace everyone is coming from people who invested a lot of money into it and really need it to succeed now.

Many also have an oversimplified view of what the discipline of software engineering includes in addition to little understanding how different types of AI work.

Besides, skillsets you learned in SE can easily applied to other 'non-virtual' fields. Many people suck at providing clear and specific instructions or requirements; businesses also have many real world processes that need to be optimized; identifying problems in a system (you first need to see there is an issue, if you want to ask an AI to fix it for you in the next step); being able to break down and tackle large, complex topics; ... I could probably come up with many more points.